Question about red flags on EFT withdrawals

ImGamblin'Again! · Oct 25, 2006

Did some research on this site about the manner in which you might be red flagged. Just did a withdrawal for a little over $2,000 into my checking account which has, but rarely been over $1,000 in it. Usually is under that # or have had a little over $1,000 in it.

Will bank red flag this as "inconsistent".

This is getting ridiculous that all this time and effort to win, then you have to be worried about getting flagged.

This will be one of many future withdrawals I will make. So a few Questions if anyone can help....

Should I use a Neteller debit card to withdraw funds rather than the EFT method?

Has anyone actually been, or know of anyone, that's been audited and fined or penalized for not claiming winnings by IRS. Whether it was thru red flags by bank, or just by random audit?

I need some alternative I have a lot of winnings not yet even withdrawed, but I want to space some out.

Is best thing to do is file my winnings?

Can I just use neteller report of total deposits minus total withdrawals to document this? This looks like only way I could make an accurate reprt of my winnings against losses or vice versa.

So many hoops to jump thru to actually be a winner in this industry, I just want to enjoy what I've EARNED, is that so bad !!

This post just reminded me of a good movie quote from Nicholson...."You wanna investigate me, role the dice and take your chances..."

Well I dont want that to really happen, but I dont want to lose sleep over collecting my money either. Just feel like all these barriers and tax anxieties are like saying "You can bet and lose you sucker, but you better not win too much" Any input from anyone in the know would be much appreciated to these questions. Thanks

Rawpimple · Oct 25, 2006

You know what people are going to say, right?

Keep accurate records and pay your taxes and you have nothing to worry about.

Not many, if any people on here are going to give you "real life" advice. Talk to several accountants and see what they say.

billsfan · Oct 25, 2006

Paying your taxes is a good idea.

lander · Oct 25, 2006

pay your taxes, enjoy your winnings and live stress free.

da1prophet · Oct 26, 2006

I don't think the bank will "redflag" your account just for the amount of money in it--back when I was married I had an account that I had kept for years. We had other "joint" bank accounts but I kept this account open and just had a few hundred bucks in it at any given time. At one point we sold a house and made a hefty five figure profit. I threw that in there without any problem or any questions.

You might raise more suspicion if you deposit cash, but I doubt it. I know here in the south there are plenty of guys who make a lot of money on a strictly cash basis. I know a guy who makes 6 figures a year buying antique watches and lighters and selling them at swap meets and whatnot. He goes into the bank every Monday and deposits a big wad of cash and they smile and tell him thanks for his business. He keeps good records, pays his taxes and has never had any problems.

Basically, like the other posters said if you otherwise keep your financial house in order your local bank will be very happy to have you put as much money in your account as you want

rancher · Oct 26, 2006

the penalties for tax evasion are so ridiculously stiff that, despite struggling with this same issue, i eventually had to concede that the best EV was just to pay my taxes... as painful as that may seem.

folks get 30 years for failing to pay taxes on $100k over 3 years. do the math.

Domer · Oct 26, 2006

I think I am fukked as far as reporting taxes. There's no way I can possibly tabulate all of my wins and losses. I know that I have made a lot over the past 10 months, but I have also been doing like 50 bets a week.

I'd like to report but I don't even think it's feasible. Plus, would I report winnings that haven't been withdrawn?

Any advice?

bigbet1234 · Oct 26, 2006

Make an honest effort this year to estimate the winnings, all while starting today keeping record.

"IF" you do happen to get audited, and they see you weren't blatantly trying to pull the wool over their eye's you should be good.

Good luck,

BB

Fishhead · Oct 26, 2006

bigbet1234 said:
Make an honest effort this year to estimate the winnings, all while starting today keeping record.

"IF" you do happen to get audited, and they see you weren't blatantly trying to pull the wool over their eye's you should be good.

Good luck,

BB

Exactly.

Do a SEARCH for "TAX and/or TAXES and single out the FINANCIAL FORUM when doing this............you will find threads on this that are abundant of the last two years.

GL,
-FH-

sean1 · Oct 26, 2006

If you place 1000s of bets and file as a business, the IRS does not expect you to document each and every bet.

It seems reasonable to document money into your bank and money out of your bank.

Just my opinion, but seems reasonable.

Sean

sean1 · Oct 26, 2006

Another interesting questions are bonuses - are they income or gifts? You can receive a gift of up to $10,000 from anyone tax free (I think up to $600,000/year or over your life or something like that). Are bonuses income or gifts? Certainly an interesting question for an accountant...

Sean

Fishhead · Oct 26, 2006

sean1 said:
Another interesting questions are bonuses - are they income or gifts? You can receive a gift of up to $10,000 from anyone tax free (I think up to $600,000/year or over your life or something like that). Are bonuses income or gifts? Certainly an interesting question for an accountant...

Sean

I treat ALL offshore gambing income/profits as INCOME FROM GAMBLING and report it on line 21 of the 1040 form...............and deduct losses on SCHEDULE A, thus arriving at the amount I have to pay taxes on.

Been doing this for 15+ years and have found it is the absolute best way for me personally............and probably the same would be true for the vast majority of players here that have NET profits in the $10,000-$200,000 range yearly from gambling.

Again, I HIGHLY RECOMMEND doing a SEARCH on this topic here at TheRX...........one will find many discussions on this topic, most of which are in the FINANCIAL FORUM.

SBBC · Oct 26, 2006

If you do not make a ton while doing this you most likely won't get an audit - however not a bad idea to pay taxes on your winnings.

Fishhead · Oct 26, 2006

SBBC said:
If you do not make a ton while doing this you most likely won't get an audit - however not a bad idea to pay taxes on your winnings.

I know people in the forum have said that you can also report your losses - or offset your losses - which means if you win 5k for the year and have 3k in losing tickets - you just have to report the 2k that you won.

5K goes on line 21 1040 as OTHER INCOME(gambling), 3k is deducted on Schedule A............net result has one paying taxes on the 2k NET profit.

Losing tickets, slot card printouts, offshore sportsbook printouts, etc., etc., although nice to have, are NOT REQUIRED if one is able to keep an ACCURATE DIARY of ALL their gambling ventures..............which at the minumum should include DATE, GAME, WON/LOSS, and WHERE BET WAS PLACED(BELLAGIO, PINNACLE, HARDROCK, DOYLESROOM, etc., etc).

bigbet1234 · Oct 26, 2006

I was also audited by the State of Arizona as odd as that is. Just keep a log of wins/losses and that is fine. I do monthly totals basicly. No need to show every single wager.

Now, when I go to the casino's I generally get a dealers name, machine number, time i was there and what casino. Always the time, and casino and amount lost.

BB

SBBC · Oct 26, 2006

Fishhead said:
5K goes on line 21 1040 as OTHER INCOME(gambling), 3k is deducted on Schedule A............net result has one paying taxes on the 2k NET profit.

Losing tickets, slot card printouts, offshore sportsbook printouts, etc., etc., although nice to have, are NOT REQUIRED if one is able to keep an ACCURATE DIARY of ALL their gambling ventures..............which at the minumum should include DATE, GAME, WON/LOSS, and WHERE BET WAS PLACED(BELLAGIO, PINNACLE, HARDROCK, DOYLESROOM, etc., etc).

Thanks Fish - I had edited out the post so I did not include wrong information...I just asked a few questions over in the financial forum about this- some of which you answered - thanks a lot Fish!

My Wins/Losses are all tracked on Pinnacle's web site- that is the book I use - So when it comes to tax season, I just tally up the wins and losses/profit and then will report it as such.

bigbet1234 · Oct 26, 2006

A few states, an mine, lovely old Ohio has it to whre you have to pay taxes on the full gambling wins. You can't even deduct your losses, now that blows. Say you make 300K, and have 100K in losses, you still have to pay state on the 300K.

BB

Fishhead said:
5K goes on line 21 1040, 3k deducted on Schedule A............net result has one paying taxes on the 2k NET profit.

Losing tickets, slot card printouts, offshore sportsbook printouts, etc., etc., although nice to have, are NOT REQUIRED if one is able to keep an ACCURATE DIARY of ALL their gambling ventures..............which at the minumum should include DATE, GAME, WON/LOSS, and WHERE BET WAS PLACED(BELLAGIO, PINNACLE, HARDROCK, DOYLESROOM, etc., etc).

Fishhead · Oct 26, 2006

bigbet1234 said:
A few states, an mine, lovely old Ohio has it to whre you have to pay taxes on the full gambling wins. You can't even deduct your losses, now that blows. Say you make 300K, and have 100K in losses, you still have to pay state on the 300K.

BB

Hopefully this cat will never live in a state with state income tax again..........great advantage of living in NEVADA and FLORIDA for this simple reason, as well as a few other states.

thevietchamp · Oct 26, 2006

Would it be correct to use Neteller as your source for determining wins/losses for the year? Deposits being considered as losses, while withdrawals to bank account being profits?

And if so, would it matter if you overall lost (deposits > withdrawals), would you still have to claim?

Good info guys, thanks in advance!

Fishhead · Oct 26, 2006

thevietchamp said:
Would it be correct to use Neteller as your source for determining wins/losses for the year? Deposits being considered as losses, while withdrawals to bank account being profits?

And if so, would it matter if you overall lost (deposits > withdrawals), would you still have to claim?

Good info guys, thanks in advance!

You are responsible for ANY amount of money that hits your bank account(at the VERY LEAST).

Again, the best way to go about doing any of this is to keep a SIMPLE and DETAILED diary...........VERY EASY TO DO.